Bank of Japan
The yen is strengthening - there were two dissents to the hold decision, both wanting a rate rise.
BOJ policy decision
BoJ keeps rates unchanged by a 7–2 vote.
Board members Takata and Tamura dissented.
Takata: Saw a shift away from the deflationary norm and judged the 2% price stability target “more or less achieved.”
Tamura: Said with inflation risks skewed to the upside, the policy rate should be set closer to neutral.
Economic assessment
Economy recovering moderately, though some weakness seen.
Exports and output remain broadly flat.
Capital expenditure on a moderate upward trend.
Private consumption remains resilient.
Inflation expectations have risen moderately.
Growth likely to slow due to global trade policies but re-accelerate thereafter.
Underlying inflation to stagnate with slower growth but gradually accelerate later.
Asset disposals
BoJ to begin selling ETF and J-REIT holdings.
Decision on ETF/J-REIT sales made by unanimous vote.
Sales to proceed “in accordance with the fundamental principles of their disposal.”
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Still to come is Bank of Japan Governor Ueda's news conference:
- due at 0630 GMT / 0230 US Eastern time
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Background to this:
